Contractors All Risks Insurance in Malaysia
Contractors All Risks Insurance (CAR Insurance)
In Malaysia, Contractors All Risks Insurance (CAR Insurance) is used in reference to Civil Engineering works. This is different from Erection All Risks and All Risks Insurance.
This Contractors insurance is used for civil engineering work such as building, property development, road upgrades and repairs, and other civil works. These works need to have start dates and end dates. Examples of Civil Engineering work covered by Contractors All Risks Insurance are:
- Buildings and Houses
- Harbors, Docks and Piers
- Dams, Water Supply Systems
- Drainage and Sewage Systems
- Roads, Tunnels, Bridges and Railways
Contractors All Risks Insurance Coverage
A Contractors All Risks Insurance covers material damage and third party liabilities for a civil engineering project.
This insurance plan is treated as a comprehensive insurance to cover risks and damages to materials and harm to third parties on the work site, occurring during the period covered by the policy.
Material Damages Covered by Contractors All Risks Insurance
This material damage covers all aspects of material damages to the contract sum insured as listed below.
- Contract Work including Materials
- Contract Price due to Variations
- Materials Provided by Principals
- Construction Plant and Equipment
- Construction Machinery
- Existing Property on Worksite
- Surrounding Property of Worksite
- Removal of Debris due to Loss
- Professional Fees for Loss Recovery
Third Party Liability Covered by Contractors All Risks Insurance
This third party liability is liability coverage only for authorized visitors to the site. An unauthorized visitor is not covered. Liability to workers is covered by a separate insurance policy, the Workman Compensation Insurance policy.
- Accidental Injury on Site
- Illness on Site
- Accidental Loss of Property
- Accidental Damage to Property
Perils covered by Contractors All Risks Insurance
Below are some of the perils covered by this insurance plan. This depends on insurer and and selection of perils and risks.
- Fire
- Explosion and Blasting
- Floods, Immersions and Inundation
- Volcanos, Earth Movements, Landslides
- Storms, Typhoons and Tsunamis
Contractors All Risks Policy Coverage and Premium Calculation
This insurance is designed to provision funds in the event a risk event happens on a civil engineering project worksite. These are damages to the work site, project materials and machinery and injuries to third parties. These damages can be caused by emergent known or unknown risks from the project situation or environment. Different insurers may have some specific differences. The insurance agent will be best positioned to advice you on this.
This insurance premium is calculated based on the full value of the contract, the costs of making good the site, liability costs and possibly the replacement costs of insured line items. This will depend on what is filled into the proposal form and also on what is acceptable to the insurance company. Contact our experienced general business insurance agents to guide you on creating, comparing and evaluating the insurance proposals from different insurers.
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